Who is to blame for Bedford council's financial crisis? Conservatives and Lib Dems in bitter clash

A war of words has broken out over the financial future of Bedford Borough Council after an independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA) warned of serious weaknesses in governance, income strategy and long-term planning.

The Conservative administration, in power since 2023, says the report confirms years of financial mismanagement under the Liberal Democrats, including decisions to freeze council tax and neglect income and debt strategy, which they say have left the council vulnerable to shocks and reliant on dwindling reserves.

But the Lib Dems have said finances were on a “steady footing” until the Conservatives took over in 2023, who have had a “reckless and wasteful approach” to managing the council’s purse strings.

According to the draft review, the historic freeze and reduction in council tax led to a £24 million shortfall in 2024/25.

While CIPFA does not describe past decisions as “reckless”, it highlights the absence of a corporate income strategy, poor quality business cases for capital spending, and understaffed finance and legal teams unable to challenge or steer key decisions.

“This is not a quick fix,” the portfolio holder for finance, councillor Marc Frost (Conservative, Wixams and Wilstead) said. “Reversing 14 years of financial mismanagement will take time and discipline.

“But we are committed to rebuilding a council that is financially stable, professionally run, and focused on delivering results for residents.”

But Liberal Democrat finance spokesperson, councillor Michael Headley (Putnoe) hit back, accusing the Conservatives of attempting to “rewrite history” when they spoke about council tax.

“Attempts to rewrite history by the Conservatives are not going to be taken seriously,” he said.

“Rather than try to deflect blame, they need to put their energy into cleaning up the mess.

“Residents are the ones who are going to suffer, and they won’t be impressed with excuses, they want to see results.”

The Local Democracy Reporting Service (LDRS) asked the Lib Dems why they were calling for actions on the parts of the CIPFA review they agree with, while downplaying a section the Conservatives have cited (council tax).

Councillor Michael Headley said: “The Conservatives tried to cut council tax when they were in opposition, which would have unbalanced budgets at the time.

“Now they are claiming council tax is too low. You couldn’t make this up.

“Unfortunately, the situation is far too serious for this rewriting of history.

“The scale of the problem created by the Conservatives’ reckless budgeting is way beyond a change in council tax, as CIPFA recognises.”

CIPFA itself has been careful in tone but firm in substance, warning that without sustained reform, the council requires urgent action to avoid issuing the equivalent of a bankruptcy notice (section 114).

It recommends a long-term plan to rebuild reserves, review historic capital decisions, and professionalise income, debt, and governance systems.

The Conservative group said it had acted “decisively” following advice from CIPFA and local government expert Theresa Grant OBE, putting in place a five-year Stability Plan and updating the council’s Medium Term Financial Strategy through to 2030.

Councillor Frost said the plan targets £33 million in sustainable savings and income reforms, with a focus on rebuilding reserves, tightening debt recovery, and strengthening oversight of high-pressure areas like adult social care and temporary accommodation.

“We have begun to reform procurement, commissioning and debt management, areas that suffered from years of historic underperformance,” he said.

“Alongside this, we are working to grow income through better use of assets, commercial reviews, and a capital programme that supports investment in frontline services without excessive borrowing.

“Our aim is not to reduce services. Our aim is to protect and improve them by putting Bedford Borough Council back on firm financial ground.”

He added that without urgent reforms, CIPFA had made clear the council would be at real risk of financial failure.